21

A.—2,

3. As respects goods received on consignment from abroad for sale or disposal within the colony, the return to be made by the agent shall show the total sums received or receivable for the goods sold or disposed of, with the name and address of the principal or principals respectively. 4. (1.) Where any agent or principal fails to pay any income-tax assessed to the agent pursuant to said section 19 of these regulations, the amount due in respect of tax shall, to the extent of the defaulting principal's interest in any goods at any time arriving in the colony consequent on any sale or disposal made or any order procured by any agent on account of the defaulting principal, be a charge on such goods, and the Collector shall have power to detain such goods until the amount has been paid. (2.) For the purpose of this clause the Collector shall have power to require the importer of any goods to produce to him all books, papers, or correspondence, and to answer any questions, and on oath if the Collector thinks fit, relating to any such goods. 5. (1.) Where any agent fails to make returns, or where the principal sells or disposes of, in the colony, any goods, and the whereabouts of the agent is not known, any Collector shall estimate the value of such goods, and shall assess the profit thereon to the principal at such sum, being not more than twenty-five pounds in every one hundred pounds of such value, as the Collector may think just. (2.) Income-tax shall thereupon be payable on the amount of such assessed profit, and the Collector may require payment thereof and shall have power to detain such goods until payment is made. (3.) It shall be lawful for such Collector, on entry being passed for such goods, to require the importer or consignee to produce a copy of the order for such goods, and to make a statutory declaration as to whether or not any such goods were ordered through an agent in the colony, and as to such other particulars as may be required. 6. (1.) It shall be lawful for any importer or consignee to pay to the Collector the amount owing by any principal in respect of income-tax, and every such importer or consignee shall be entitled to a certificate from the Collector as to the amount so paid. (2.) Every such certificate shall be in satisfaction pro tanto of any claim on the part of the principal against the importer or consignees. (10669/95.)

Sir,—- Downing Street, 28th June, 1895. I am directed by the Marquis of Eipon to transmit to you a copy of a letter from the Birmingham Chamber of Commerce, with its enclosures, drawing attention to the inconvenience to which they consider that trade is subjected in consequence of certain regulations issued by the Governor of New Zealand under the Land and Income Assessment Acts of that colony so far as these regulations affect foreign traders. Before sending this letter out to the colony, Lord Eipon would be glad to receive any observations which the experience of the Inland Revenue Department may lead them to suggest, as his Lordship is not aware how far, if at all, the rates complained of by the Chamber of Commerce are based on those of the Imperial Government. I am, &c, The Chairman of the Inland Eevenue Department. R. H. Mbade.

Sic, — Inland Revenue, Somerset House, London, W.C., 6th July, 1895. The Board of Inland Eevenue have had before them Sir Eobert Meade's letter of the 25th ultimo, 10669/95, addressed to the Chairman, enclosing a copy of a communication from the Birmingham Chamber of Commerce, in which attention is drawn to the inconvenience to which, it is considered, trade is subjected in consequence of certain regulations which have been issued by the Governor of New Zealand under the Land and Income Assessment Acts of that colony, in so far as such regulations affect foreign traders. With reference thereto I am directed to acquaint you, for the information of the Secretary of State, that there is nothing analogous in our income-tax law and practice to the detailed regulations laid down in the New Zealand law with respect to the declarations of agents. Agents are bound to make a return of the profits and gains of their principals, as will be seen on reference to section 41 of the Act 5 and 6 Vict., cap. 35. The question of their liability to income-tax was, moreover, recently raised, and a decision given in the Court of Appeal — vide the case of Grainger and Son v. Gough (1895, 1 Q.B. 71) —affirming their liability. They are not, however, required to make a form of specific declaration in regard to the particulars of goods ordered, &c. I have, &c, The Under-Secretary of State, Colonial Office. W. H. Cousins, Secretary.

No. 20. (New Zealand, General.) My Lord, — Downing Street, 17th July, 1895. I have the honour to request that you will move your Ministers to favour me with an early reply to my predecessor's circular despatch of the 10th June, 1893, on the question of the adoption of a uniform system in the issue of certificates to masters and mates in the Australian Colonies, and the fixing of a common definition of the term " coasting service." I have, &c, J. CHAMBEELAIN. Governor the Eight Hon. the Earl of Glasgow, G.C.M.G.

A.-2, 1894, No. 16.